Stocks up on possible monetary easing
The local stock barometer rebounded sharply on Wednesday as investors considered the possibility of a potentially dovish local central bank under its new governor, Budget Secretary Benjamin Diokno.
The Philippine Stock Exchange index (PSEi) racked up 150.72 points, or 1.97 percent, to close at 7,821.34 while regional markets traded with mixed sentiment.
Asked about the catalyst for the day’s rebound, Eagle Equities president Joseph Roxas said banking issues were up. “If there’s monetary easing, banks benefit. If there’s tightening, banks make less money.”
Diokno, who was recently named by President Duterte as the new Bangko Sentral ng Pilipinas chief, is seen to be biased for an accommodative monetary policy.
All counters ended higher, led by the property subindex, which added 2.42 percent.
The financial, industrial, holding firm and services counters rose by more than 1 percent, while mining/oil also inched up.
Total value turnover for the day amounted to P6 billion. There was net foreign buying of P272.89 million.
There were 113 advancers that edged out 88 decliners while 38 stocks were unchanged.
The PSEi was led higher by MPI, which surged by 5.76 percent. Its tollway unit, NLEX Corp., received the Toll Regulatory Board’s order to publish the adjusted toll rates for the North Luzon Expressway (NLEx) system. This incorporates the first tranche of the approved final periodic adjustments for the whole NLEx system due in 2013 and 2015 constituting 50 percent of the approved adjustment and the provisional add-on toll rate for the NLEx open system due to the opening of the NLEx Harbor Link project (Segments 9 and 10).
ICTSI, Bloomberry and GT Capital all surged by more than 3 percent. Ayala Land, BDO, Jollibee and URC added over 2 percent.
AGI rose by 1.72 percent while Ayala Corp., PLDT, Metrobank and Semirara all firmed up.
Outside the PSEi, one notable gainer was Vista Land, which rose by 1.96 percent.
On the other hand, JG Summit, AEV and San Miguel Corp. all dipped.
One notable decliner outside the PSEi was Greenergy, which lost 7.58 percent.